This quiz works best with JavaScript enabled. Home > Economics > International > Trade > Trade Exchange And Interdependence – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Trade Exchange And Interdependence Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is likely to cause a rise in a country's foreign exchange rate? A) A fall in its exports of goods and services. B) A fall in its imports of goods and services. C) A fall in its inflow of income. D) A rise in its outflow of transfers. Show Answer Correct Answer: B) A fall in its imports of goods and services. 2. A strategy to save foreign exchange by encouraging domestic production of such goods which the country has been importing from rest of the world is called: A) Inward looking strategy. B) Outward looking strategy. C) Export promotion strategy. D) None of these. Show Answer Correct Answer: A) Inward looking strategy. 3. Which of the following is a benefit of a fixed exchange rate regime? A) Certainty about the value of the domestic currency. B) Commitment to inflationary policies. C) No need for foreign exchange reserves. D) Allows for unrestricted use of monetary policy. Show Answer Correct Answer: A) Certainty about the value of the domestic currency. 4. In the coming years, Vietnam is expected to grow on: A) 5.7%. B) 3.7%. C) 2.5%. D) 22.5%. Show Answer Correct Answer: A) 5.7%. 5. How many foriegn tourists visited India in 2010 A) 7.10 million. B) 5.78 million. C) 5.5 million. D) 6.8 million. Show Answer Correct Answer: B) 5.78 million. 6. What does OPEC stand for? A) Organization of Petroleum Excelling Countries. B) Organization of Petroleum Exporting Countries. C) Output Petroleum Equalizing Countries. D) Oil Producing of the Equilibrium Countries. Show Answer Correct Answer: B) Organization of Petroleum Exporting Countries. 7. Who will be hurt by a tariff on medicine coming into the US. A) US medical companies. B) US government revenue. C) Sick people in US. D) None of above. Show Answer Correct Answer: C) Sick people in US. 8. Who brought their goods and ideas with the Silk Roads? A) Merchants and adventurers. B) Historians and lawyers. C) Diplomats and missionaries. D) Jokers and fortune tellers. Show Answer Correct Answer: A) Merchants and adventurers. 9. Country A can produce more coal than Country B. An economist would say that Country A has ..... over country B. A) A production possibility advantage. B) A comparative advantage. C) An export advantage. D) An absolute advantage. Show Answer Correct Answer: D) An absolute advantage. 10. A strategy to earn foreign exchange by promoting domestic exports and making domestic industry competitive in the international market is called: A) Inward looking strategy. B) Outward looking strategy. C) Import substitution strategy. D) None of these. Show Answer Correct Answer: B) Outward looking strategy. 11. What happens when two parties willingly trade with each other? A) Both parties disappear. B) Both parties end up better than they were before. C) Neither party end up better than they were before. D) One party does very well, and the other doesn't. Show Answer Correct Answer: B) Both parties end up better than they were before. 12. The purpose of dumping is A) To lower the wages of the employees. B) To gain a high market share. C) To improve the quality of the good. D) To get rid of unwanted products for a cheap price. Show Answer Correct Answer: B) To gain a high market share. 13. Which trade route linked East Africa with India and China? A) Mediterranean Sea Complex. B) Indian Ocean Trade. C) Columbian Exchange. D) Silk Road. Show Answer Correct Answer: B) Indian Ocean Trade. 14. North American Free Trade Agreement (NAFTA) promotes the movement of goods between participating countries without restrictive: A) A imports or exports. B) B imports and trade. C) C tariffs or quotas. D) D domestic and offshore. Show Answer Correct Answer: C) C tariffs or quotas. 15. This factor of production that involves money, equipment, tools, and any items needed to produce goods and services? A) Capital goods. B) Entrepreneur. C) Land resources. D) Human resources. Show Answer Correct Answer: A) Capital goods. 16. Requiring or relying on something A) Absolute advantage. B) Dependent. C) Specialization. D) Comparative advantage. Show Answer Correct Answer: B) Dependent. 17. Why would a country want to begin using trade barriers such as tariffs or quotas? A) To make goods cheaper. B) To expand their markets. C) To protect domestic jobs. D) To stimulate the economy. Show Answer Correct Answer: C) To protect domestic jobs. 18. Through the interaction of trade Afro-Eurasia shares? A) Artistic styles. B) Religions. C) Technologies. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. The term Latin America comes from the ..... languages that are spoken in this area. A) Portuguese. B) Roman. C) Spanish. D) Catholicisim. Show Answer Correct Answer: B) Roman. 20. What do we call the difference between the value of exports and the value of imports? A) The balance of trade. B) The terms of trade. C) The pattern of trade. D) None of above. Show Answer Correct Answer: A) The balance of trade. 21. What word does NOT refer to the exchange of goods and services A) Transaction. B) Indolence. C) Barter. D) Trade. Show Answer Correct Answer: B) Indolence. 22. The reason Africans were used as slaves was because the ..... people died of diseases the ..... brought with them to the ..... A) Horribe, plantations, europeans. B) Indigenous, Europeans, New World. C) Europeans, indigenous, New World. D) None of above. Show Answer Correct Answer: B) Indigenous, Europeans, New World. 23. Landlocked nations, or those with mountains, and rainforests ..... all of these are examples of ..... A) Embargoes. B) Quotas. C) Tariffs. D) Natural trade barriers. Show Answer Correct Answer: D) Natural trade barriers. 24. Using foreign resources instead of domestic resources A) Multinational corporation. B) Globalization. C) Outsourcing. D) Interdependent. Show Answer Correct Answer: C) Outsourcing. 25. Example:In 2005, the United States limited the imports of Chinese textiles to 7.5% a year. A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: A) Quota. 26. This account records a nation's imports and exports of goods, services, net investment income, and net transfers. A) Current account. B) Financial/capital account. C) Official reserves. D) None of above. Show Answer Correct Answer: A) Current account. 27. What is the difference between nations exports and imports? A) Balance of Trade. B) Comparative Advantage. C) Absolute Advantage. D) Real GDP. Show Answer Correct Answer: A) Balance of Trade. 28. In 1962, the United States prohibited all imports and exports to and from Cuba. A) Tariff. B) Embargo. C) Quota. D) None of above. Show Answer Correct Answer: B) Embargo. 29. Country ProductGrenada Nutmeg, MaceJamaica Coffee, BauxiteBarbados SugarAntigua PineappleGuyana Bauxite, RiceTrinidad Asphalt, OilWhich country is most likely to export materials for fixing roads? A) Barbados. B) Antigua. C) Trinidad. D) Guyana. Show Answer Correct Answer: C) Trinidad. 30. What would a free-trader most likely support? A) The infant industries argument. B) NAFTA. C) A revenue tariff. D) An embargo. Show Answer Correct Answer: B) NAFTA. ← PreviousNext →Related QuizzesInternational QuizzesEconomics QuizzesTrade Exchange And Interdependence Quiz 1Trade Exchange And Interdependence Quiz 2Trade Exchange And Interdependence Quiz 3Trade Exchange And Interdependence Quiz 4Trade Exchange And Interdependence Quiz 6Trade Exchange And Interdependence Quiz 7Trade Exchange And Interdependence Quiz 8Trade Exchange And Interdependence Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books